In the push for green energy, more people are installing solar panels, given that there are government incentives and rebates that can help with the cost.
However, before buying them, there are many factors to consider. They may lower your electricity bill, but it could take a long time to break even and installing them could affect your home’s resale value and insurance premiums.
A Scarborough man who had solar panels installed on his home four years ago told CTV News he wanted to do his part to help the environment and lower his energy costs.
“I wanted to go green and save some money,” said Osvaldo Guzman, who added, “Unfortunately, I didn’t get any money back or even save money.”
He paid $40,000 for the solar panels and installation, but a year later, there was a problem.
“My system was broken, and the company didn’t respond,” Guzman said.
Guzman said he had to pay $10,000 for repairs to get the system working again.
He shared that his total monthly savings on his energy bill is $100 a month, meaning it will take over 40 years to break even on the investment he has made.
Before getting solar panels, homeowners also need to check with their insurance company to make sure they’re covered.
“If they find out you had solar panels that did not fit with your eligibility rules, they could deny your claim, and that could be a costly mistake,” said Steven Harris, a licensed insurance broker with LowerRates.ca
There may also be restrictions on how much power you can generate, and while you may save money on electricity, your insurance premiums could also go up.
“It might be included in your policy, but it’s ultimately going to increase the value of your dwelling, so you will see an increase in your premiums as well,” Harris said.
Having solar panels on your home could also affect your home’s resale value, as there may be buyers who don’t want to deal with them or take over existing agreements and contracts.
In the event you need a new roof, you may need to pay to remove the panels and reinstall them.
When asked if he would buy solar panels again, Guzman said, “No, never.”
If you decide to get solar panels, go over contracts carefully, as there can be big differences in what’s covered and what’s not, especially if you need repairs.
There can also be differences in metering policies and how much money you’ll be paid for the power you generate.
